3560
Mar 20 2011: When people start doing things in unison, that's a pretty good sign that they're ALL wrong! — Wired http://t.co/bCmYqqJ via @lolahayes [view in context] 3561
Mar 20 2011: Bubbles happen when investors start looking around at what others are doing instead of understanding the value of what they're buying. 3562
Mar 20 2011: Naive investors tend to mistake trends for underlying value. 3563
Mar 20 2011: The "momentum" of a stock or other asset is a delusion. It may seem apparent in retrospect but is a poor predictor of future prices. 3564
Mar 20 2011: Betting on the short-term rise or fall of prices is like gambling in Vegas. Some win and get all the publicity, but most quietly lose. 3565
Mar 20 2011: People in love are essentially investors, betting on a future outcome based on the trends of today. 3566
Mar 20 2011: The "momentum" of a relationship is how fast it is changing. If you're "falling in love", the momentum is very high. 3567
Mar 20 2011: The speed that a relationship is changes bears no relation to the underlying value of the relationship. 3568
Mar 20 2011: The recurring error of investors everywhere is to take the "trend" of today and extrapolate it in a straight line into the future. 3569
Mar 20 2011: Most "trends" are unsustainable. They will change at some unpredictable future time as they exhaust their underlying resources. 3570
Mar 20 2011: In the housing bubble, everyone was watching their neighbors and the "trend" of rising prices. Few cared about underlying value. 3571
Mar 20 2011: In many a romantic bubble, people mistake rapid change in the relationship for underlying value. 3572
Mar 20 2011: People in love see "trends" in their relationship and assume they will always continue. They fail to see how trends can change. 3573
Mar 20 2011: If a bacterium divides every few hours, math predicts it will soon take over the world, but resource limits guarantee this won't happen. 3574
Mar 20 2011: Every relationship has its resource limitations, which aren't usually apparent at the beginning. Love can grow only so far. 3575
Mar 20 2011: In love, like investing, underlying value is more important than surface trends. 3576
Mar 20 2011: #### End. This has been a live 1-hour essay by the Bad Dalai Lama: "Love and Investing" [view in context]
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